Author: Meker M
Update: 30/11/2022

10 MISTAKES TO AVOID FOR EFFECTIVE INVENTORY MANAGEMENT

For any manufacturing or distribution business or store, warehouse management plays an extremely important role, which can directly affect the business performance as well as the development strategy of the company. But businesses always have problems in management such as excess inventory, ..So, what errors need to be overcome to promote the efficiency of warehouse management?

 


1. Excessive inventory surplus

Excess inventory can be used for other purposes but at the same time they also take up space in the warehouse. Excess stock can delay any process – including loading and unloading, and inventory audits.

2. Not optimized space and warehouse structure

Optimizing warehouse space can improve productivity and efficiency, helping businesses significantly reduce import and export time. Therefore, consider carefully the characteristics of goods to be stored as well as how to move when exporting - importing to arrange the warehouse reasonably.

3. Distract from employee training

You cannot expect a person to perform a task correctly without taking the time to train that person to do it properly. When businesses make efforts to train employees, what businesses will receive is better work efficiency and productivity as well as increased revenue.

4. Not planning Accurate predictions help

Enterprises plan requirements for items better. But even without a good forecast, businesses can still take steps through a max/min threshold inventory management plan. Through the plan, businesses will have an overview and easily track the use of inventory without having too much inventory.

5. Negligence in cleaning

A cluttered warehouse will make finding products more difficult and narrow the space to store goods. In addition, negligence will cause businesses to lack attention to important details, and they will certainly cause "disaster" for businesses in the future. Keeping shelves organized, sweeping floors, and making sure every crate is clearly labeled will help keep the warehouse organized.

6. Lack of safety in warehouse management

Accidents will cause loss of time, and money and also affect the morale of employees. People work better in an environment where they feel safe and cared for. Therefore, businesses need to equip fire protection equipment in the warehouse, and at the same time instruct employees on how to use them when there is a problem.

7. Forget about the inventory you are making

Some managers spend the last two weeks of the month pushing customer orders and neglecting the production of semi-finished products (WIPs). As a result, at the beginning of the next month, they often miss orders because they don't have the finished product. Or, they perfect the product in haste. This may cause unnecessary omissions. So, prioritize tasks for the month to balance the work cycle.

8. Automation error

Buying automated hardware and software costs less money than fixing bugs. Investing in state-of-the-art data collection and labeling solutions helps businesses increase efficiency and accuracy.

9. Not measuring work efficiency

If not measured, productivity will not improve. Please give the factors businesses are most interested in when working. Then, measure them through KPIs. Surely the productivity of enterprises will skyrocket!

*KPI: indicator measures and evaluates the performance of a department in a company or the operation of the whole company.

10. Label quality is not guaranteed
Businesses can speed up picking and storing goods when all goods have clear labels or tags. So invest in high-quality labels and printers and make it easy for employees to label all of them when they receive them. However, the goods supply process does not just stop at efficient warehouse management, it is also the process of transporting and unloading goods. This requires a superior, fast system that not only saves time but also transports costs.

Source: haiquanvietnam.net

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